Selling a dental practice, one of the most significant financial decisions of a principal’s career, is not something that can be taken lightly. The difference between a smooth transaction and a drawn-out, stressful one often comes down to how well-prepared the seller is before the process begins. With the right amount of groundwork in place, principals can ensure the accuracy of their valuation and reduce delays, making sure they approach a complex market with confidence.
Get your finances in order early
The first thing any buyer, lender, or valuer will scrutinise is the financials. Current and historic accounts need to be accurate, organised, and straightforward. Any inconsistencies will be picked apart quickly – and will lead to lower or less competitive offers.
It is also important to pay attention to revenue mix: a good number of UDAs can be appealing, as it demonstrates a guaranteed income, but practices with a healthier amount of private income will typically pull in a stronger valuation. If there is scope to grow private activity in the years before sale, this will have a meaningful impact on the final figure.[i]
Understanding what drives the valuation
A credible valuation is a number firmly supported by evidence.
Valuers will typically work from a multiple of adjusted net profit, referred to as EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation), and taking into account factors such as income type, patient numbers, location, competition, and the physical condition of the practice. Understanding how each of these facets works allows principals to make targeted improvements before they go to market.
Critically, the valuation needs to hold up under scrutiny from the buyer’s lender. If the supporting calculations are weak or incomplete, a renegotiation or revaluation request mid-sale is a real risk, and one that can significantly disrupt the process.[ii]
The process itself takes a lot longer than some expect
Even well-prepared vendors are often surprised by how time-consuming and detail-heavy the process becomes. The CQC transfer of registration can be one of the most protracted steps; beginning this process as early as possible is strongly advisable. For NHS practices, the transfer of contract adds another layer of complexity that should not be underestimated.
Digital systems and record keeping have also become increasingly relevant to buyers and their advisors. Practices running up-to-date software, with clear patient records and appointment data, tend to present more transparently than those relying on legacy systems.
Property: more to address
The property in which a practice is located can create complications if it is not reviewed early. For leasehold premises, the length of the remaining lease matters considerably – short leases reduce a buyer’s ability to secure lending, and extending a lease takes time. Landlord negotiations should begin well ahead of going to market.
On top of lease length, vendors should check for Land Registry discrepancies, as well as review the Energy Performance Certificate, which remain valid for 10 years. Properties rated below an ‘E’ will likely require remedial work before sale.[iii] Schedules of condition should be reviewed, and any significant changes to the premises agreed with the landlord before the practice is on the market.
Managing the team
The practice team is both the heart of the business and one of its most complex considerations during a sale. Staff retention throughout the process is important: patient capacity and practice performance are directly tied to having a stable, functioning team, and both affect valuation. Principals should think carefully about when and how to communicate a sale to their staff; the timing and approach will vary depending on individual circumstances.
On the subject of wages, it can be tempting to implement pay rises in the run-up to a sale as a retention measure. This should be considered carefully, as increased costs will reduce profitability and therefore will affect the business valuation. Aligning salaries with local market rates and exploring alternative incentives is generally a more balanced approach.[iv]
Resist the wind-down
Perhaps the most common, and the most costly, mistake principals make is easing off in the final years before sale. Declining patient numbers, reduced treatment activity, or deferred investment will all register in the accounts. Buyers and their advisors will identify the trend, and the risks. Starting the sale process earlier gives vendors more time to grow and optimise the business, rather than simply preparing it for exit.
Dental Elite’s team of specialists works with principals at every stage of the journey, from initial valuation through to completion, providing expert support across finance, property, marketing, and transaction management to help vendors achieve the best possible outcome for the businesses they have built.
The vendors who achieve the strongest results are invariably those who plan ahead. With the right preparation – and the right support – a dental practice sale can be exactly what it should be: the reward for a career well spent.
For more information on Dental Elite visit www.dentalelite.co.uk, email info@dentalelite.co.uk or call 01788 545 900
Author: Luke Moore, Founders and Directors of Dental Elite
[i] Taylor F. How to value a dental practice – Frank Taylor & Associates. Frank Taylor & Associates. Published February 22, 2024. Accessed March 19, 2026. https://www.ft-associates.com/valuations-what-we-do/how-to-value-a-dental-practice/
[ii] McGinnity P. Key considerations for practice sales – Scottish Dental magazine. Scottish Dental magazine – The essential magazine for dental professionals in Scotland. Published February 11, 2025. Accessed March 18, 2026. https://www.sdmag.co.uk/2025/02/11/key-considerations-for-practice-sales/
[iii] Taylor F. Dental Practice EPC Certificate | Asbestos Certificate. Frank Taylor & Associates. Published August 21, 2024. Accessed March 19, 2026. https://www.ft-associates.com/sell-a-dental-practice/epcasbestos-certificate/
[iv] Moore L. A Spotlight on Staff Problems in Dental Practice Sales | Dental Elite. Dental Elite. Published August 9, 2019. Accessed March 19, 2026. https://dentalelite.co.uk/articles/a-spotlight-on-dental-staff
